North Sea warns UK govt to back homegrown oil, gas

A powerful cross-industry group led by North Sea energy producers have delivered a “strongly worded” letter to the incoming UK government — warning that policy makers must back homegrown oil and gas ahead of imports, alongside greater support for UK manufacturing and industry.

The letter is signed by industry executives, trade unionists and trade bodies from chemicals to engineering, aggregates and building materials to the offshore energy sector and the shipping industry.

“It has been sent to all 403 Labour MPs and makes clear that the UK economy is at a turning point,” said Offshore Energies UK. “Decisions made now will be key to the economic success or failure of the UK in the coming decades …

“It is being presented at Westminster today in Parliament Square, Westminster to a representative group of Labour MPs from the growing number sympathetic to the argument that supporting North Sea production is not just a commitment to homegrown energy but also a commitment to UK manufacturing, industrial capability and the skilled workforce that has powered the nation for generations …

“The letter highlights that the UK will continue to require oil and gas for decades and argues that the key policy choice is whether those resources are produced domestically or increasingly imported from overseas.

“Signatories warn that growing reliance on imports could expose the country to geopolitical risks while undermining jobs, communities and supply chains across the UK.”

Offshore Energies UK CEO David Whitehouse said: “Our colleagues in other industries are joining us to show their support for this basic message. Energy security, economic resilience and reindustrialisation depend on maintaining domestic energy production as well as greater investment in renewable and low-carbon technologies.

“We fully support the government’s ambition to build a secure, lower-carbon energy system, but energy transition must follow an “all-energy approach” that builds on existing industrial strengths and strengthens rather than weakens national industrial capability.”

Steve Elliott, Chief Executive Chemical Industries Association, said: “As a key foundation industry which is core to jobs and the wider economy the UK chemical sector must attract investment. Fundamental to that is our ability to access competitive and secure energy to run our factories and to produce the critical materials that underpin the country’s critical infrastructure, our growth sectors and the clean energy future.

“If the new administration is serious about re-industrialisation and good growth across the country, then it must do all it can to make that energy competitive and secure. Backing North Sea oil and gas alongside renewables is not about slowing progress. On the contrary, it is about strengthening industrial competitiveness, protecting jobs and reducing reliance on imports in an increasingly volatile world.

This morning’s announcement is a key part of the answer, let’s get on with it”

Gary Smith, GMB Union General Secretary, said: “In an increasingly uncertain world, it is more important than ever that we can get the energy we need to power our homes, businesses, and essential public services.

“We will need oil and gas for decades to come. Increasing our reliance on imported energy from overseas for the essential elements that power our economy and keep the country going, leaves us worryingly exposed.

“GMB is looking to the Government to show it understands the significance of this moment – jobs, communities, and our national security are at stake.”

Elizabeth de Jong, Chief Executive Officer, Fuels Industry UK, said: “The UK continues to need fuels; it makes sense to maximise the value created here at home by supporting both refineries and North Sea production. Domestic manufacturing sustains high-skilled jobs, strengthens energy security and underpins our industrial future.”